Mettler-Toledo International Inc (MTD)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.57 | 0.56 | 0.55 | 0.48 | 0.46 |
| Debt-to-capital ratio | 1.07 | 1.09 | 0.99 | 0.90 | 0.82 |
| Debt-to-equity ratio | — | — | 76.98 | 9.22 | 4.54 |
| Financial leverage ratio | — | — | 140.86 | 19.41 | 9.96 |
Mettler-Toledo International Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations. From the data provided:
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. The trend shows an increase from 0.46 in 2020 to 0.57 in 2024, indicating a higher reliance on debt to fund assets over the years.
2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital structure that is funded by debt. The trend shows an increase from 0.82 in 2020 to 1.07 in 2024, suggesting that debt financing has become a larger component of the company's capital structure.
3. Debt-to-equity ratio: This ratio compares the company's total debt to its shareholders' equity. The ratio sharply rose from 4.54 in 2020 to 76.98 in 2022, reflecting a significant increase in debt relative to equity. The absence of data for 2023 and 2024 may indicate potential issues with debt or equity reporting.
4. Financial leverage ratio: This ratio measures the extent to which the company's operations are financed by debt. The trend indicates a substantial increase from 9.96 in 2020 to 140.86 in 2022, suggesting a high level of financial leverage and potential financial risk.
Overall, the increasing trends in the debt-related ratios highlight a growing reliance on debt financing for Mettler-Toledo International Inc, which could indicate potential solvency challenges in the future if not managed effectively.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 14.90 | 13.59 | 20.33 | 22.95 | 20.39 |
The interest coverage ratio for Mettler-Toledo International Inc has shown a generally positive trend over the years, indicating the company's ability to comfortably meet its interest payment obligations from its operating income.
As of December 31, 2020, the interest coverage ratio was 20.39, demonstrating a strong ability to cover interest expenses. The ratio increased to 22.95 by December 31, 2021, reflecting an improved financial position.
However, there was a slight decline in the interest coverage ratio to 20.33 by December 31, 2022, which is still at a healthy level. Nevertheless, there was a more noticeable decrease in the ratio to 13.59 by December 31, 2023, indicating a potential strain on the company's ability to cover interest payments.
By December 31, 2024, the interest coverage ratio recovered to 14.90, showing some improvement from the previous year but still below the levels seen in the earlier years.
Overall, while the company has demonstrated a strong ability to cover its interest expenses in the past, there are signs of fluctuation in recent years, suggesting a need for continued monitoring of its financial performance and debt management strategies.